Real estate workers record increased income in survey

Workers in the real estate sector are reporting the highest increase in pay in a new study, even as the majority of Kenyans face stagnated or reduced incomes in a depressed economy.

The ILAM Consumer Spending Index for the last quarter of 2024 shows that real estate, which comprises building and construction had the most individuals who reported to have witnessed an increase in income over the period.

This is at 22 per cent compared to 14 per cent in manufacturing and trade and 13 per cent in wholesale and retail.

However, of the five sectors analysed in the findings by ICEA LION Asset Management, wholesale and retail had the most individuals (33 per cent) who reported decreased income.

The hotel, tourism and leisure sector had the most individuals who reported that their income had stagnated at 66 per cent.

The research team attributed this to the numerous visible ongoing construction projects, such as high-end shopping malls, industrial warehouses, residential apartments and student housing projects, many of which are being increasingly undertaken by foreign investors.

Head of Research ICEA LION Asset Management Judd Murigi also linked the improved income to affordable housing projects being undertaken across the country.

“Affordable housing projects may also have led to increased demand for construction workers,” he said.

The survey shows among those who witnessed an increase in income, a majority, 29 per cent, changed jobs followed by 28 per cent who found a side hustle and 24 per cent who got a pay increment.

As income increased among this section of workers, the survey also reports a rise in their spending.

“The highest increase was noted among workers in the real estate-building and construction sector, where 86 per cent of respondents recorded an increase in spending,” the survey reads.

“In contrast, workers in manufacturing and trade reported a slightly higher decrease in spending at 25 per cent.”

The survey collected views from 233 retail businesses and 1,210 individuals.

The businesses were from four sectors namely - clothing and apparel, house fittings and accessories, restaurants, bars and leisure outlets and retail stores.

Of these sectors, house fittings and accessories recorded had the most respondents (58 per cent) who reported reduced sales during the period.